Legal Question in Business Law in California

You should describe to the judge your relationship -- how long you've been friends, favors you've done for him, that you're like brothers, etc. He will have to prove the essential terms -- show first that he gave you the money (a bank statement showing withdrawal from a bank account, for instance), when you were supposed to repay it, what the terms of repayment were, etc. If it's more than two years ago, the statute of limitation might have run.

sure depending on the nature of the agreement. the court will evaluate the nature of the agreement and what was said. The lack of an agreement in writing could be seen as evidence of a gift.

Whether the money was a loan depends upon what you agreed to, not whether there is a signed agreement. A signed document would make your friend's case easier to prove, but even oral contracts can be enforced in court.

What matters is whether your friend gave you the money as you say, or whether he loaned it to you as he says. The lack of a signed agreement is not enough to defeat his claim, though you may be able to win on other grounds.

It's up to the judge to decide, based on the evidence and testimony presented, whether the money was a gift or a loan. The plaintiff has the responsibility to prove, on a "more likely than not" basis, that it was a loan and that you owe him.

As a Franchise Attorney I agree with the other attorney answers. It will probably come down to what your relationship is (or was). Think about Judge Judy and her cases where one of the persons in a relationship gives the other money to buy a car or make a rent payment, etc. Then the relationship goes south and suddenly they're in front of Judge Judy with one party claiming it wasn't a gift, but a loan. Those are easy cases. The reality is someone doesn't give another money as a gift unless there's some kind of close, personal relationship involved. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation